Present Value of Future Operating Lease Payments

Bristol-Myers Squibb Co., future operating lease payments

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Total undiscounted future operating lease payments1 (USD $ in millions) 793  783  822  572  614 
Discount rate2 3.04% 3.24% 3.23% 4.02% 4.02%
Total present value of future operating lease payments (USD $ in millions) 694  669  706  507  546 

1 Source: Bristol-Myers Squibb Co. Annual Reports

2 Weighted-average interest rate for Bristol-Myers Squibb Co.'s debt

Year Future operating lease payments (as reported)1 Year Future operating lease payments (estimated) Present value at 3.04%
2018 141  2018 141  137 
2019 110  2019 110  104 
2020 90  2020 90  82 
2021 75  2021 75  67 
2022 71  2022 71  61 
2023 and thereafter 306  2023 71  59 
2024 71  58 
2025 71  56 
2026 71  54 
2027 22  16 
Total: 793  793  694 

1 Source: Bristol-Myers Squibb Co. Annual Reports

Year Future operating lease payments (as reported)1 Year Future operating lease payments (estimated) Present value at 3.24%
2017 123  2017 123  119 
2018 107  2018 107  100 
2019 86  2019 86  78 
2020 66  2020 66  58 
2021 61  2021 61  52 
2022 and thereafter 340  2022 61  50 
2023 61  49 
2024 61  47 
2025 61  46 
2026 61  44 
2027 35  25 
Total: 783  783  669 

1 Source: Bristol-Myers Squibb Co. Annual Reports

Year Future operating lease payments (as reported)1 Year Future operating lease payments (estimated) Present value at 3.23%
2016 134  2016 134  130 
2017 111  2017 111  104 
2018 99  2018 99  90 
2019 78  2019 78  69 
2020 62  2020 62  53 
2021 and thereafter 338  2021 62  51 
2022 62  50 
2023 62  48 
2024 62  47 
2025 62  45 
2026 28  20 
Total: 822  822  706 

1 Source: Bristol-Myers Squibb Co. Annual Reports

Year Future operating lease payments (as reported)1 Year Future operating lease payments (estimated) Present value at 4.02%
2015 136  2015 136  131 
2016 121  2016 121  112 
2017 94  2017 94  84 
2018 83  2018 83  71 
2019 57  2019 57  47 
2020 and thereafter 81  2020 57  45 
2021 24  18 
Total: 572  572  507 

1 Source: Bristol-Myers Squibb Co. Annual Reports

Year Future operating lease payments (as reported)1 Year Future operating lease payments (estimated) Present value at 4.02%
2014 145  2014 145  139 
2015 137  2015 137  127 
2016 117  2016 117  104 
2017 77  2017 77  66 
2018 65  2018 65  53 
2019 and thereafter 73  2019 65  51 
2020
Total: 614  614  546 

1 Source: Bristol-Myers Squibb Co. Annual Reports

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Analyst Adjustments for Operating Leases

Bristol-Myers Squibb Co., adjustments to financial data

USD $ in millions

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Adjustment to Total Assets
Total assets (as reported) 33,551  33,707  31,748  33,749  38,592 
Add: Operating leased assets1 694  669  706  507  546 
Total assets (adjusted) 34,245  34,376  32,454  34,256  39,138 
Adjustment to Total Debt
Total debt (as reported) 7,962  6,708  6,689  7,832  8,340 
Add: Operating lease obligations2 694  669  706  507  546 
Total debt (adjusted) 8,656  7,377  7,395  8,339  8,886 
Adjustment to Earnings before Interest and Tax (EBIT)
EBIT3 (as reported) 5,327  6,082  2,261  2,584  3,090 
Add-back: Operating lease expense4 120  145  140  137  144 
Less: Depreciation expense, operating leased assets5 96  119  114  112  117 
EBIT (adjusted) 5,351  6,108  2,287  2,609  3,117 
Adjustment to Interest Expense
Interest expense (as reported) 196  167  184  203  199 
Add: Interest expense, operating lease obligations6 24  26  26  25  27 
Interest expense (adjusted) 220  193  210  228  226 

1, 2 Equal to total present value of future operating lease payments. See Details »

3 See Details »

4 Source: Bristol-Myers Squibb Co. Annual Reports

5 See Details »

6 See Details »

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Adjusted Ratios for Operating Leases (Summary)

Bristol-Myers Squibb Co., adjusted ratios

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Total Asset Turnover1
Reported total asset turnover 0.62 0.58 0.52 0.47 0.42
Adjusted total asset turnover 0.61 0.57 0.51 0.46 0.42
Debt to Equity2
Reported debt to equity 0.68 0.41 0.47 0.53 0.55
Adjusted debt to equity 0.74 0.46 0.52 0.56 0.59
Return on Assets3 (ROA)
Reported ROA 3.00% 13.22% 4.93% 5.94% 6.64%
Adjusted ROA 2.94% 12.97% 4.82% 5.85% 6.55%
Interest Coverage4
Reported interest coverage 27.18 36.42 12.29 12.73 15.53
Adjusted interest coverage 24.32 31.72 10.87 11.45 13.81
Ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Bristol-Myers Squibb Co.'s adjusted total asset turnover improved from 2015 to 2016 and from 2016 to 2017.
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders' equity. Bristol-Myers Squibb Co.'s adjusted debt-to-equity improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Bristol-Myers Squibb Co.'s adjusted ROA improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.
Adjusted interest coverage A solvency ratio calculated as adjusted EBIT divided by adjusted interest payments. Bristol-Myers Squibb Co.'s adjusted interest coverage improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

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Adjusted Total Asset Turnover

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
As Reported
Revenues (USD $ in millions) 20,776  19,427  16,560  15,879  16,385 
Total assets (USD $ in millions) 33,551  33,707  31,748  33,749  38,592 
Total asset turnover1 0.62 0.58 0.52 0.47 0.42
Adjusted for Operating Leases
Revenues (USD $ in millions) 20,776  19,427  16,560  15,879  16,385 
Adjusted total assets (USD $ in millions) 34,245  34,376  32,454  34,256  39,138 
Adjusted total asset turnover2 0.61 0.57 0.51 0.46 0.42

2017 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 20,776 ÷ 33,551 = 0.62

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 20,776 ÷ 34,245 = 0.61

Ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Bristol-Myers Squibb Co.'s adjusted total asset turnover improved from 2015 to 2016 and from 2016 to 2017.

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Adjusted Debt to Equity

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
As Reported
Total debt (USD $ in millions) 7,962  6,708  6,689  7,832  8,340 
Total Bristol-Myers Squibb Company shareholders' equity (USD $ in millions) 11,741  16,177  14,266  14,852  15,154 
Debt to equity1 0.68 0.41 0.47 0.53 0.55
Adjusted for Operating Leases
Adjusted total debt (USD $ in millions) 8,656  7,377  7,395  8,339  8,886 
Total Bristol-Myers Squibb Company shareholders' equity (USD $ in millions) 11,741  16,177  14,266  14,852  15,154 
Adjusted debt to equity2 0.74 0.46 0.52 0.56 0.59

2017 Calculations

1 Debt to equity = Total debt ÷ Total Bristol-Myers Squibb Company shareholders' equity
= 7,962 ÷ 11,741 = 0.68

2 Adjusted debt to equity = Adjusted total debt ÷ Total Bristol-Myers Squibb Company shareholders' equity
= 8,656 ÷ 11,741 = 0.74

Ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders' equity. Bristol-Myers Squibb Co.'s adjusted debt-to-equity improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

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Adjusted Return on Assets (ROA)

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
As Reported
Net earnings attributable to BMS (USD $ in millions) 1,007  4,457  1,565  2,004  2,563 
Total assets (USD $ in millions) 33,551  33,707  31,748  33,749  38,592 
ROA1 3.00% 13.22% 4.93% 5.94% 6.64%
Adjusted for Operating Leases
Net earnings attributable to BMS (USD $ in millions) 1,007  4,457  1,565  2,004  2,563 
Adjusted total assets (USD $ in millions) 34,245  34,376  32,454  34,256  39,138 
Adjusted ROA2 2.94% 12.97% 4.82% 5.85% 6.55%

2017 Calculations

1 ROA = 100 × Net earnings attributable to BMS ÷ Total assets
= 100 × 1,007 ÷ 33,551 = 3.00%

2 Adjusted ROA = 100 × Net earnings attributable to BMS ÷ Adjusted total assets
= 100 × 1,007 ÷ 34,245 = 2.94%

Ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Bristol-Myers Squibb Co.'s adjusted ROA improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

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Adjusted Interest Coverage

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
As Reported
Earnings before interest and tax1 (EBIT) (USD $ in millions) 5,327  6,082  2,261  2,584  3,090 
Interest expense (USD $ in millions) 196  167  184  203  199 
Interest coverage2 27.18 36.42 12.29 12.73 15.53
Adjusted for Operating Leases
Adjusted EBIT (USD $ in millions) 5,351  6,108  2,287  2,609  3,117 
Adjusted interest expense (USD $ in millions) 220  193  210  228  226 
Adjusted interest coverage3 24.32 31.72 10.87 11.45 13.81

1 See Details »

2017 Calculations

2 Interest coverage = EBIT ÷ Interest expense
= 5,327 ÷ 196 = 27.18

3 Adjusted interest coverage = Adjusted EBIT ÷ Adjusted interest expense
= 5,351 ÷ 220 = 24.32

Ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as adjusted EBIT divided by adjusted interest payments. Bristol-Myers Squibb Co.'s adjusted interest coverage ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

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Estimation of Depreciation Expense, Operating Leased Assets

USD $ in millions

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Operating lease expense1 120  145  140  137  144 
Less: Estimated interest expense, operating lease obligations2 24  26  26  25  27 
Estimated depreciation expense, operating leased assets 96  119  114  112  117 

1 Source: Bristol-Myers Squibb Co., Annual Reports

2 See Details »

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Estimation of Interest Expense, Operating Lease Obligations

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Operating leased assets, at beginning of year1 (USD $ in millions) 790  788  819  619  664 
Discount rate2 3.04% 3.24% 3.23% 4.02% 4.02%
Estimated interest expense, operating lease obligations3 (USD $ in millions) 24  26  26  25  27 

1 See Details »

2 Weighted-average interest rate for Bristol-Myers Squibb Co.'s debt

2017 Calculations

3 Estimated interest expense, operating lease obligations = Operating leased assets, at beginning of year × Discount rate
= 790 × 3.04% = 24

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Present Value of Operating Lease Payments, at Beginning of Year

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Total present value of future operating lease payments1 (USD $ in millions) 694  669  706  507  546 
Operating lease expense2 (USD $ in millions) 120  145  140  137  144 
Discount rate3 3.04% 3.24% 3.23% 4.02% 4.02%
Total present value of operating lease payments, at beginning of year4 (USD $ in millions) 790  788  819  619  664 

1 Equal to total present value of future operating lease payments. See Details »

2 Source: Bristol-Myers Squibb Co., Annual Reports

3 Weighted-average interest rate for Bristol-Myers Squibb Co.'s debt

2017 Calculations

4 Total present value of operating lease payments, at beginning of year = (Total present value of future operating lease payments + Operating lease expense) ÷ (1 + Discount rate)
= (694 + 120) ÷ (1 + 3.04%) = 790

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